Business deals | Nokia sells its submarine cables for 350 million euros

Network devices manufacturer Nokia announces that it has signed an agreement to sell its submarine cable systems (ASN) to the French states. The value of the deal is 350 million euros.

“This transaction is a step forward in our strategy, which includes the continuous development of our business portfolio. ASN has been a separate business area from Nokia’s core business. With the acquisition, the network infrastructure business group’s product portfolio will become clearer and it can focus on growth and strengthening technology leadership,” says the CEO Pekka Lundmark in the bulletin.

According to him, the French state is a suitable owner for submarine cables because it ensures the continuation of investments and the protection of know-how in this “critical industry”.

Marines cable systems has been a separate business area at Nokia. As a result of the transaction, the company announces that it can focus on growth opportunities in the core markets of its network infrastructure business group and improve its profitability.

Nokia will initially retain a 20 percent ownership stake in the submarine cables. After the agreed period, the French government redeems the remaining share of Nokia.

“The French government, represented by the Agence des Participations de l’Etat (state-owned company), is excited to announce its willingness to purchase 80 percent of ASN. The company is one of the world’s leading suppliers of submarine cables and the only European operator in its field,” says the French Minister of Finance Bruno Le Maire in the bulletin.